Redington (REDINGTON) Q4 24/25 earnings summary

Executive summary

• Achieved record Q4 and FY25 revenue and profit, with Q4 revenue at INR 26,510 crore and profit at INR 400 crore, and FY25 revenue at INR 99,562 crore and profit at INR 1,340 crore, both showing double-digit year-over-year growth, excluding PayNet divestment gains.

• Completed PayNet divestment for Rs. 763.2 crore, with a post-tax gain of Rs. 536.68 crore recognized as an exceptional item, excluded from adjusted results.

• Maintained strong execution and operational performance across all business segments and geographies, with India and UAE leading growth.

• Board recommended a final dividend of Rs. 6.80 per share, about 40% of annual profits, subject to shareholder approval.

• Audited standalone and consolidated financial results for FY25 were approved with unmodified opinions from auditors.

Financial highlights

• Q4FY25 global revenue (incl. Arena) up 18% YoY to INR 26,510 crore; EBITDA up 24% to INR 667 crore; PAT up 23% to INR 400 crore.

• FY25 global revenue (incl. Arena) up 11% YoY to INR 99,562 crore; EBITDA up 5% to INR 2,257 crore; PAT up 10% to INR 1,340 crore.

• Consolidated net profit for FY25 was Rs. 1,820.62 crore, up from Rs. 1,238.61 crore in FY24.

• Working capital closed at 34 days, matching previous year.

• Interest and factoring costs for FY25 were INR 531 crore, down from INR 706 crore last year.

Outlook and guidance

• Focus on expanding software and cloud portfolio, targeting 30-40% growth in software.

• EBITDA margin guidance remains at 2.3%-2.5% in the near term, with potential for gradual improvement.

• Q1 expected to be seasonally soft, but optimism for continued growth in FY26.

• Tax rate expected to rise to 25-27% in FY26 due to global minimum tax changes.

• Emphasis on accelerating business growth, digital transformation, and expanding in growth geographies.